News Release

Cisco Planning New Micro Servers to Complement IBM Network Computer Reference Design

"Thin Server" Concept to Complement "Thin Client" Model
Jun 11, 1997

San Jose, Calif. -- June 11, 1997 -- Cisco Systems, Inc. said today that it is planning a newclass of "thin servers" that will work with the emerging category of network computers (NCs) or "thin clients," which are based on IBM's PowerPC microprocessor technology. This new familyof products will be optimized to work with NCs, like those based on IBM's new Network ComputerReference Design.

The concept of Cisco's Micro NC Server is to support localized services in order to reducenetwork traffic congestion and provide fast access to routine applets used for many databaseand spreadsheet programs. This type of server would address concerns about how NCs in aworkgroup will initially "boot" and download information from large back-end servers withoutcreating traffic jams at the workgroup or creating long wait times at the desktop.

"Cisco believes that the network computing model put forth by IBM and others will spawn newapplications for distributed computing and intelligent networks for large and small businessesand individuals," said Christine Hemrick, Vice President & General Manager, Internet Appliances& Applications Business Unit at Cisco Systems. "Cisco is uniquely able to foster the growth ofnetwork computing by providing secure, reliable information networks that deliver end-to-endnetwork services."

Cisco's announcement comes at the same time as IBM Microelectronic's news that it is makingavailable a new NC development kit for manufacturers based on its PowerPC family ofmicroprocessors.

According to Zona Research, worldwide demand for network computers and thin clients could reach7.7 million units by 2000 -- up from 1.8 million in 1997. Growth of this scale would increase requirements for cost-effective support of NCs with "thin servers."

"With IBM Microelectronics' development kit on the client side and thin servers like thoseprovided by Cisco, system developers and integrators will have two key elements they need tobroaden market acceptance of network computers," said Jesse Parker, marketing director at IBMMicroelectronics.

Cisco intends to make a formal product announcement by the end of 1997 as one outcome of thework on its "Micro NC Server" concept. Elements of the product line will focus on specificvertical applications based on distributed-object environments enabled by the Java VirtualMachine. Plans call for the products to be powered by IBM's PowerPC 403GCX microprocessor.

The Micro NC Server will join the Cisco Micro Webserver in Cisco's line of "micro servers" thatprovide cost-effective "plug-and-play" support for network-based services and applications.

The Micro Webserver, which has been available since February, provides an easy way to host anInternet Web page or provide intranet-based, intra-office communications.

Cisco's line of internet appliances can benefit both NCs and traditional desktop PCs. They alsowill serve as a model technology solution for other network computer system designs offered bynumerous computer manufacturers.

Cisco Systems

Cisco Systems, Inc. (NASDAQ: CSCO) is theworldwide leader in networking for the Internet. at

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